How Can I Take Advantage of a 1031 Exchange?
You have to follow the rules and requirements for a 1031 exchange and use an intermediary to facilitate the process.
The 1031 exchange requires that the same owner possess both the current and new property (often called "relinquished" and “replacement” properties, respectively). You cannot use the 1031 exchange to transfer property to someone else.
You also cannot save any money from the 1031 exchange. The tax deferral is designed so you can reinvest more money into a new property. If you save any of the income from the sale of the current property, that income is taxed.
You cannot complete a 1031 exchange using your primary residence. The 1031 exchange is used for investment or business property only.
- What Is a 1031 Exchange?
- How Do I Complete a 1031 Exchange Application?
- How Do I Choose a Qualified Intermediary for a 1031 Exchange?
- What Type of Property Can I Swap in a 1031 Exchange?
- What Are Some Advantages Provided by a 1031 Exchange?
- What Is the Timeline for a 1031 Exchange Application?
- How Can I Use a 1031 Exchange to Stop Managing Property?
- How Long Do I Have to Complete a 1031 Exchange?
- What Is "Like-Kind" Property in a 1031 Exchange?
- What Is the "Boot" in a 1031 exchange?
- How Do I Fully Defer the Tax on the Sale of My Property through a 1031 Exchange?
- What Is a Delayed 1031 Exchange?
- What Is a Reverse 1031 Exchange?
- Do I Need an Intermediary for a 1031 Exchange?